Analysts: Reopening of Strait of Hormuz key to restoring Iraq's oil exports

KUWAIT CITY, Kuwait — International energy analysts said the reopening of the Strait of Hormuz is an important step toward restoring oil flows in the Middle East, including Iraq's exports. The narrow waterway is a critical passage for Gulf oil shipments, and analysts said Iraq stands to benefit from its stability. According to a report by S&P Global, combined daily oil production in Iraq, Saudi Arabia, the United Arab Emirates, Kuwait and Iran fell to 13.406 million barrels in May, down from 23.475 million barrels in February, underscoring the scale of the regional supply loss. Analysts noted that full recovery will depend on shipments returning to normal and on clearing the logistical bottlenecks that have built up in recent months. Energy specialists said restoring supply chains and infrastructure could take several months before flows return to previous levels. Major Gulf oil companies have estimated that the market recovery will continue gradually through 2026, with a full rebound potentially extending into 2027. The OPEC+ alliance is expected to address August production quotas at its meeting on July 5, as part of efforts to gradually raise supply following the sharp regional decline.